
Author:
Roy Connor
Last Updated on:
28/05/2023
Topic:
Trading
Trading CFDs and trading Forex are both profitable ways to invest; however, one of these instruments might suit your trading needs better than the other. Continue reading our CFD vs Forex guide to figure out which instrument you should trade.
We’ll also go over why and how you begin trading with us at CAPEX – the best online broker for CFDs.
The best part about trading CFDs is that they offer diversification. CFD traders have the privilege of investing in numerous markets of their choice, which reduces the risk of loss and adds up to a great trading portfolio.
Here at CAPEX, we offer over 2100 instruments that can be traded through CFDs. Whether you’re interested in commodities, stocks, indices, ETFs, or Forex – you can simply sign up with CAPEX and invest in the markets of your choice with the lowest trading fees.
Beginning your investment journey can be an overwhelming experience, and the risk of losing your money only adds to the fear. So, it’s always beneficial to trade on a risk-free demo account before risking your funds on an actual trading account.
Here at CAPEX, we offer a smooth CFD demo trading account that looks and feels exactly like our actual trading account but involves trading with fake money. You can sign up on our demo account to practice trading until you feel comfortable enough to invest your money. Plus, we also allow our demo account users to benefit from our excellent learning tools.
CFD or contract for differences is a popular form of financial derivatives, where a buyer and a seller speculate on an asset’s future price and agree to exchange the difference in the asset’s value over a given period. CFD trading does not involve the buying or selling of any underlying assets; instead, CFD traders only buy and sell contracts.
CFD trading allows traders to benefit from falling as well as rising markets. For instance, if you expect the market to go up, you can go long and buy an open position or contract. On the other hand, if you feel the market will go down, you can go short or sell an open position.
A huge pro of trading CFDs is that you can diversify your trades because CFDs can be traded on various instruments, including stocks, commodities, Forex, indices, ETFs, blends, and bonds.
Experience a new level of trading with the right support when you need it. Sign up for a free account and trade smart with CAPEX.com.
Forex or foreign exchange is one of the largest markets in the world, with an annual turnover of trillions of dollars. As the name suggests, Forex traders buy and sell foreign currencies to make a profit from the shifting currency values.
For instance, if you want to trade USD for GBP, you’ll go for the currency pair USD/GBP, check the exchange rate, speculate whether the exchange would be profitable in the future, then make the trade through an online broker or exchange platform.
While trading foreign exchange is a great way to capitalize on your funds, it’s also risky because currency prices can be affected by numerous factors, including environmental factors or decisions made by large financial institutions.
We at CAPEX offer excellent customer support seven days a week, some of the the lowest trading costs, and the smoothest trading experience with the help of advanced tools. All our offerings are a result of our dedication to providing traders with the best trading experience.
CFD and Forex are both unique trading instruments, though they do have a few similarities as well:
Differences between CFDs and Forex:
Important political developments
Tax changes
Consumer & producer preferences – CPI or PPI reports
Interest Rate Decisions - Bank of England MPC Announcements, Fed Interest rate Decisions, etc.
Other market-related FX news
Visit our Special Articles page for the latest market news on cryptos, stocks, indices, and more!
No instrument can be deemed better than the other; however, it’s essential to understand which instrument would suit your trading needs better. It all comes down to what you’re looking for in an investment.
If you’re interested in trading with a limited number of currencies with leverage, then Forex trading might suit you. However, if you want to trade in a wide range of markets and diversify your trades, want to make larger trades with limited capital, and would like to have more flexibility with your investments, then CFDs should be your go-to option.
Here at CAPEX, we offer traders over 2,100 tradable assets that can be traded through CFDs on our smooth and advanced trading platforms – CAPEX WebTrader and MetaTrader 5 (MT5) platform. Plus, we charge the lowest trading fee, commissions, and spreads to ensure our traders have the best trading experience at the lowest cost.
Beginning your trading journey can be overwhelming, especially when you’re investing in CFDs as they’re risky instruments. However, there are a number of reasons as to why you should begin your trading journey with CAPEX which you can read about below.
We believe the secret to becoming an expert trader is to obtain knowledge and focus on ongoing learning. Hence, we offer our traders a range of excellent learning tools and features such as an online trading school – CAPEX Academy, where traders can watch videos to learn to trade.
Having a trading platform that is simple and easy to use can make your trading experience much smoother and better. Here at CAPEX, we offer two unique trading platforms, both of which are highly intuitive and have a simple interface. From the moment you begin trading with us, you’ll notice how everything is neatly aligned and super accessible.
Whether you’re interested in commodities, Forex, crypto, stocks, or blends – CAPEX offers all of these along with many more tradable assets. You can trade CFDs on over 2100 tradable assets with us at CAPEX, that too, with the lowest trading costs. We truly believe that diversifying your trades is an effective way to maximize profits and minimize risk, which is why we offer so many trading options.
We have a diverse range of users and value everyone’s beliefs. So, if you’re a Muslim, you can gain access to a swap-free Muslim trading account. All you have to do is get in touch with our customer support team and provide proof of identity, the rest will take care of itself, and you’ll shortly get access to your personalized Muslim account.
Apart from the benefits mentioned above, we at CAPEX offer excellent customer support seven days a week, some of the lowest trading costs, and the smoothest trading experience with the help of advanced tools. All our offerings are a result of our dedication to providing traders with the best trading experience.
Register
Register an account on CAPEX.com and start trading.Verify
Send over your documents and verify your account.Deposit
Login into your CAPEX.com account and deposit money.Trade
Start trading with CFD’s and over 2100 other instruments.Signing up with CAPEX is super easy and shouldn’t take more than a few minutes. Just hop on to our website and click on the ‘register for an account option. Then enter a few basic details, including your age and email address, plus click on ‘sign up’,
After that, you’ll be redirected to our trading platform, where we’ll ask you to complete your registration. Add a few more details, such as your income, taxation info, and address. Once that’s done, all you have to do is complete a quick assessment – this is designed to assess your trading knowledge and skills so we can make sure that you don’t trade beyond your capacity.
Once the above is done, your account should be verified and ready to use shortly. You can also sign up on our demo account feature to practice trading before you actually invest your capital.
Both CFDs and Forex are popular financial instruments; however, both of them offer unique trading experiences. Since CFDs allow you to trade in a range of markets, trade with more flexibility without owning the underlying asset and offer a fair amount of leverage, they might be the right choice for you.
Plus, you can trade CFDs on Forex with us at CAPEX as well. What better than to experience CFD trading as well as Forex trading at once? To get a glimpse of CFD trading with the best online CFD broker out there, sign up at CAPEX today. You can also sign up for a demo account free of cost and experience CFD trading with zero risks.